Zhitong Financial APP learned that Bank of America Securities released a research report saying that it was first given a "buy" rating by Xinyi Group (01686). It is expected that profits will grow at a compound annual growth rate of 14.7% in 2020-24, with a target price of HK $9.

According to the report, the company has a solid market leading position in the Internet data center market in Hong Kong, China, and the soon-to-be-completed data center meets the steadily rising demand. Because there are few data center service providers with similar attributes in Hong Kong, China, Xinyi has pricing power. In addition, three new data centers will be put into use in the next 1-2 years, and the total floor area will double from the existing 1.4 million feet to 2.9 million feet, which will greatly increase the revenue of Xinyi's data services.